HI6008 Business Research Project: Outsourcing Functions Report

This report, submitted by a student, provides a comprehensive analysis of business functions outsourcing. It begins with an introduction and outlines the project objectives, which include understanding the concept, advantages, and disadvantages of outsourcing. The research is justified by highlighting the growing importance of outsourcing in the international business landscape. A thorough literature review follows, defining outsourcing and exploring its advantages, such as cost savings, enhanced quality, and increased flexibility. The report also addresses the disadvantages of outsourcing, including potential risks, language barriers, and concerns about job security. The report draws on various academic sources to support its arguments and concludes with a summary of the key findings and implications of business outsourcing.

Running head: BUSINESS RESEARCH
Outsourcing Business Functions
Student id:
Submitted by
[company name]

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Table of Contents
Introduction......................................................................................................................................2
Project Objective.............................................................................................................................2
Research justification.......................................................................................................................2
Literature Review............................................................................................................................3
Meaning and concept of Outsourcing..........................................................................................3
Advantages of outsourcing...........................................................................................................4
Disadvantages of outsourcing......................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
In the international business scenario, the business could confront from the stiff competition to
operate their business acts to meet accountability. Moreover, the cost control is imperative aspect
wherein the different methods are concentrated by the company like fair treatment in the
organization, a strong mission, and co-operation (Baraldi, Proença, Proença, & De Castro, 2014).
Business outsourcing function could be a crucial way of operating the business acts and make the
decision accordingly. In addition, it is evaluated that business outsourcing is a key component
that has been enhanced popularity in the recent era (Hernandez & Ona 2015). It acts is the
business when the large company decided to give its routine job act to a third party company,
which is effective to manage cost and time in the company (Pearce 2014). Through this method,
most of the business acts are related to consumer care work as well as such acts could not be a
key factor in the organization. But, at the same time, it is also founded that business outsourcing
is an act which is generally used by big industry wherein the different functions and acts could
be outsourced by a third-party company (Patil & Wongsurawat, 2015).
Project Objective
The primary purpose of this study is to critically examine the outsourcing of business functions.
Hence, the following research objectives will be accomplished by the study:
 To comprehend the concept and meaning of business outsourcing function
 To comprehend the advantages of business function outsourcing
 To examines the disadvantages of business function outsourcing
Research justification
Business outsourcing is the practice wherein job function act and any work form are assigned to
another individual as well as firm. It is practiced to manage acts across the country. It is

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practiced to manage the job acts and enlarge its business acts across the country. Furthermore,
business is identified as business acts that could be essential in a specified situation. For
example, the organization desires to create and sell particular goods and services. But, it is not
needed that same organization creates goods in their region due to the higher cost as compared to
another state. Therefore, it can outsource this act of business to third party, company in which
the cost of the product is lower. Hence, this activity could come under business outsourcing.
Literature Review
Meaning and concept of Outsourcing
According to Schniederjans Schniederjans & Schniederjans (2015) core business function
outsourcing is determined as the procedure of business wherein corporation outsources their
some function to the third party due to managing each activity and make the decision
accordingly. For example, most of the organization has outsourced their telephonic section and
managing the customer business acts to the third party, which has the capability to run the
business acts of the firm and make the decision accordingly. It could be effective in outsourcing
business activity. Moreover, it is evaluated that business outsourcing being a larger industry that
is identified as the BPO (business process outsourcing).
In support of this, Kumari Singh Mishra & Garza-Reyes (2015) stated that organization could
outsource their many activities such as housekeeping abilities of the office building as well as
janitorial services. This activity could be effective for the firm of service management as the new
business practices flow. It is also stated that outsourcing is determined as the business approach
that assigns the process, decision, and functions for the firm to a third-party firm. It could be
operated by negotiating an agreement as well as contract with vendors that takes the

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responsibilities for the customer service, production process, services quality, and individual
management. This process could be effective for declined organization expenses.
Advantages of outsourcing
Glaister (2014) business function outsourcing is effective for the organization as it offers a
possibility to manage the time, money and efforts on the specified task that are a little bit boring
as compared to other. In the current business era, it is effective for the firm to outsource its
business acts due to saving their cost as well as time. The business outsources could facilitate to
firm for making a reliable decision in the context of current matter. It is stated that customer care
acts are effective for managing human resources, which could be effective in declining the
expenses of the business acts of financial organization.
In support of this, Patil & Wongsurawat, (2015) stated that the organization could use the
outsourcing activities to deal with customer issues and make decision activity. Moreover, the
consumer could care is not more acts of the business as the telecommunication organization
could outsource their business acts and works especially for managing the time and cost of the
business, which will be effective in sustaining the business in the current era. The outsourcing
chain is effective for the different industry segment to secure their cost as well as time. In the
recent era, a huge number of the third-party firm that is engaged in acts as the outsourcing acts as
the diverse business activities could be outsourced.
Yang & Zhao (2016) examined that cost saving is the key benefits of business outsourcing
functions. It could outsource facilitates business to weakening the administrative space
administration, workforce’s compensation expenditures and other additional costs associated
with delivering workspace. It could be imperative for declining the setup and free up resources in
other intentions. It is stated that outsourcing also enables the organization to categorize their

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business activities and make a decision in favor of the research matter. It is also examined that
when the organization goes outdoor its ability then it can outsource its process business, which
will be effective to concentrate on the core corporate. For example, if the grocery store desires to
enhance the florist in its operations then the organization should outsource acts to concentrates to
concentrate on the grocery business.
In support of this, Hunter Saunders & Constance (2016) stated that business outsourcing is
effective to enhance their quality. It could be effective for quality can be accomplished the
vendors with more specialized procedure and expertise. For illustration, the organization makes
an agreement in cleaning facilities. It is examined that outsource could also be effective for
making a reliable decision. It is examined that outside abilities are prominent assent in delivering
suitable recruiting, staffing, and training for delivering the inspections that could not exist in the
case was performed in the house.
On the other hand, Rekik Boukadi & Ben-Abdallah (2015) examined that the advantage of
having the vendor contract is that as organization bounds to deliver a certain service with higher
quality. For example, when IT activities of the business are outsourced as well as the
professional call at the time sick then it is the accountability of the vendors to identify another
person for the replacing them and meet the existing needs. Consequently, business outsourcing is
effective in offering customer satisfaction for the higher extent.
Apart from this, Ahmed Capretz Sandhu & Raza (2014) examined that business outsourcing
functions could be effective in improving the operational effectiveness of the firm. Moreover, it
offers the opportunity to the firm to obtain quality services from a vendor’s specialized structure.
Specialization enables higher effectiveness and facilitates to complete the prompt time and cost.
Moreover, it is also founded that the ability could be created additional capacity that could be

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generated from outsourcing because the contract could be canceled when demand diminishes
rapidly as compared to closing down whole plants owned by a corporation. Hence, it is evaluated
that outsourcing is effective to enhance flexibility in the firm.
On the other hand, (2016) examined that larger organization address easier to create a contract
with vendors that have trained individual and have efficiency in the particular acts than to hire
the individuals in the team and afterward trained them to particular acts. In this case, a vendor
could be selected by the organization who has the great involvement of standard operating
process. It is a significant reason for business outsourcing functions as it could be effective for
the performance of the organization. A significant cause of outsourcing the business function is
to make an enhancement in business performance as outsourcer companies provide the
opportunity at the larger economy of scale.
Apart from this, Cavusgil Knight Riesenberger Rammal & Rose (2014) stated that if the
consumers could care about the division then the bank could be accountable for managing the
customer care services and make a decision in the favor of the organizational functions.
Consequently, it will enhance the productivity of the firm. But if the organization outsourced
their function in the minimum cost then they could be capable to manage business accordingly
and increase the possibilities of getting the higher outcome. Hence, a bank should concentrate on
its core acts of banking and could make their higher efforts in increasing its consumers base. In
the recent period, outsourced vendors could manage the consumer care services of a firm which
could offer an opportunity to get the opportunity and make the decision accordingly. It is
examined that an engaged group is a person who is accountable for offering customer services
and could give and reliable consumer services to the firm. However, these outsource acts could
be performed by effective or specialist human resources. Moreover, it is evaluated that vendors

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could increase the consumer's services quality by delivering feedback to the financial
organization as well as enables the alternatives to increase customer care services.
Disadvantages of outsourcing
Oshri Kotlarsky & Willcocks (2015) stated that the business outsourcing acts could directly
impact on the overall productivity of the firm by creating the risk in the business activity. For
illustrations, if an organization could make a call and there is an issue in a specific part then
those part could be outsourced due to the defectiveness. The car holder could not take any kind
of burden for correcting the damaged parts and influence the overall image of the car. The
outsourcing activity could be a tool that assists the firm in managing their activity and makes
improve the overall process of the firm.
In support of this, Nielsen Mitchell & Nørreklit (2015, March) stated that the vendors could also
make a favorable image of the faulty products by eliminating the negative perception of
consumers. A small mistake of the vendor could impact on the sale of products and services.
Outsourcing is an activity that could decline the service quality of the firm unless an agreement
identifies the measurable process due to the many reporting sections of activities. There are
many agreements that globally leave to the service stages which could facilitate to secure the
cost of the firm.
On the other side, Oshri Kotlarsky & Willcocks (2015) examined that business outsourcing
manages the language barriers for the executives of the company. For illustration, if the
consumer is outsourced into another country then the organization requisites to communicate in
the diverse languages. Therefore, it could increase the dissatisfaction level between consumers
because of language barriers at a higher extent. Outsources of business functions could make fear
among employee with respect to job security. Consequently, it declined efforts to perform well in

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a systematic way. Thus, there is requisite of managing the opinions and views of the employee's
views with the higher grace to improve the efficiency and increase the possibility of getting
positive responses.
Apart from this, Gerbl McIvor Loane & Humphreys (2015) stated that organizational knowledge
could create difficulties for the firm at the time of outsourcing of business functions and work
accordingly. It is also stated that outsourced employees have not the same knowledge and
passion for the passion of an organization as a permanent workforce. It is evaluated that
outsourced workforces could be hired on the agreement basis and them not highly skills and
knowledge towards with respect to their allocated work. Hence, it could directly impact on the
consumer experience (Sople, 2016).
On the other side, Lahiri (2016) examined that security, as well as compliance, could be
determined as the formal credentials. The outsource procedure could be managed and make their
outsource procedure that could be managed as well as assure that there is concentration to the
legal as well as structure security. It is also stated that outsourcing could create ethical as well as
legal issues in outsourcing, which will inverse impact on organizational performance. It is stated
that there are certain incidents that are associated with the human and ethical rights of violation
about outsourcing manufacturing services.
Amanullah Azhana Ab Aziz Hadi Hanis & Ibrahim (2015) examined that outsourcing activity
could decline the overall outcome of the study. Another illustration of outsourcing could occur at
the time of diversify business acts and make a decision accordingly. The problem discusses
could be effective in managing ethical as well as ethical norms. Moreover, there are many
employees who are innocent as well as workforces have lost its lives which could be effective in

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business outsourcing. It is also evaluated that ambiguities could create at the time of job activity
that has outsourced to the third party firm.
In support of this, Giri & Sarker (2017) stated that the organizations who make contract might
have ethical, legal, and moral accountability for avoiding such issues and operate the business
accordingly. It is also analyzed that the product quality could be outsourced in the case of
outsourcing the quality of services has been influenced that could decline the sale of the products
and services. It might decline the probabilities of increasing the sustainability of the firm. It is
probabilities that vendors do not evaluate the implication of the business process as well as
quality standards, which might be affected by the organization reputation that are outsourced
their functions to the third party (Pearce II, 2014).
Dinu (2015) stated that the additional barrier at the time of outsourcing the business functions is
that it could create the language barrier for the firm as it is being a major issue for the firm. It
could create the conflict ta the workplace which will influence the overall outcome of the firm.
The business procedure outsourcing is highly influenced due to their language issues, which
could be a major issue for the firm. Furthermore, if the services of an organization are outsourced
then there is a higher risk of losing the confidentiality of information. It could also influence the
overall outcome of the study (Taran Boer, & Lindgren, 2015).
Literature reviw gap
This study has been conducted on 50 employees of vodafone as it make limitation for getting the
responses. The one place of data colelction could be decline the probability of getting quality
result. The researcher has also use the mixed datta collection that could also humper to the
quality of reesarch outocme.
Research significance

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This research is effective for comprehending the menaining and concept of business outsourcing
It could support to comprehend the advatatges of business outsourcing. Moroever, this study is
effective in geting information towards many disadavtages business outsourcing that company
has follwed.
Conclusion
With respect to the overall discussion, it can be summarized that outsourcing is an activity that
occurs at the time of many activities occur in the organization and each activity could affect to
the image of the firm. In such a situation, the organization could use the outsource their activity
to the third party to effectively operate each activity of the business. It can also be summarized
that outsourcing activity could be positive as well as a negative impact on the organization
productivity. There are certain advantages that could be obtained by practicing the business
outsourcing functions named managed many activities, competitive benefits, higher consumer
satisfaction, and task goal meet on time. Apart from this, it is found that there are disadvantages
that might be occurred at the time of implying business outsourcing named language barrier,
quality services, and higher conflict among employees.

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